New Jersey drivers are about to get hit with an almost 9% hike within the state’s fuel tax — leaving them as soon as once more grappling with one of many highest charges within the nation.
Because of laws signed into legislation in 2024, the state — the one one within the nation to not permit self-service pumps — is elevating its fuel tax by 4.2 cents to 49.1 cents for gasoline and 56.1 cents for diesel Jan. 1.
The leap would common out to about $27 extra per 12 months per driver, for a complete price of $320 only for the state fuel tax alone, based on the newest figures out there, 2022.
“Individuals in New Jersey are paying a number of the highest fuel tax charges within the nation,” Alex Stevens, supervisor of coverage and communications on the Institute for Vitality Analysis, advised The Submit.
“If the state have been to cut back it to the nationwide common, which is round 33 cents, individuals within the state could be paying nicely under the nationwide common as we speak for gasoline.”
Regardless of having the eighth-highest fuel tax price of states within the nation in 2025, New Jersey is definitely in the midst of the pack when it comes to general gasoline prices, based on the Tax Basis.
It has stayed within the center lane even with out permitting self-service pumps courtesy of a decades-old legislation initially aimed toward defending smaller fuel stations and jobs and for security issues.
On New 12 months’s Eve, New Jerseyans have been paying a median of $2.833 per gallon of fuel, which was only a contact decrease than the $2.839 nationwide common, based on information from the American Vehicle Affiliation.
“Even with the excessive fuel tax, you realize, the fuel costs within the state are largely a consequence of simply form of the prevailing infrastructure that individuals have in New Jersey there,” Stevens stated.
“The state is geographically sort of situated shut by locations of excessive demand. So that they constructed rather a lot there.”
Gasoline costs have been trending down throughout the nation in current weeks, dropping to pre-pandemic ranges for the primary time in about 5 years.
New Jersey’s improve is the results of laws that outgoing Dem Gov. Phil Murphy signed in 2024 to jack up the tax in annual increments between 2025 and 2029.
One of many backers of that invoice is Rep. Nellie Pou (D-NJ), who was within the state Senate on the time and is now within the US Home.
“One other 12 months, one other cost-of-living improve for New Jersey households, they usually have Nellie Pou to thank,” Nationwide Republican Congressional Committee spokeswoman Maureen O’Toole stated.
“On January 1, larger fuel costs will hit working individuals proper within the pockets, and it’s the direct results of Nellie Pou’s lengthy document of tax hikes that make all the things from commuting to groceries dearer.”
Pou’s camp didn’t reply to a Submit request for remark.
Initially, the fuel tax was alleged to go up by round 2 cents. It beforehand jumped up by 2.6 cents in 2025. However “as a result of precise consumption has trended under final fiscal 12 months’s ranges,” the Backyard State is getting a big spike in its fuel tax this 12 months to make up for the cash distinction.
The funds will go to assist increase about $11 billion over a five-year stretch for key infrastructure initiatives for roads and bridges.
Stevens famous how the libertarian-leaning Cause Basis ranked New Jersey thirty ninth when it comes to general capital and bridge expenditures.
“For the reason that state’s fuel tax is so excessive, it seems to be like the issue actually within the state isn’t a lot the cash coming in,” Stevens stated. “They’re gathering tons of income from the excessive fuel tax, but it surely’s how the cash is being spent going out the place New Jersey ranks so poorly.”
